Insurance Rates And Regulation.

INSURANCE RATES AND REGULATION. INITIATIVE STATUTE. Requires minimum 20 percent reduction in rates for good drivers from January 1, 1988, levels. Requires companies insure any good driver in counties where company sells automobile insurance; requires 20 percent good driver discount. Funds automobile insurance fraud investigations and prosecutions. Provides consumers access to comparative automobile insurance prices. For all property-casualty, health and disability insurance, prohibits discrimination, price-fixing and other unfair practices. Requires public hearing and Insurance Commissioner approval for all but specified insurance rate changes. Establishes Insurance Consumer Advocate Office. Increases penalties for fraudulent health insurance sales to seniors. Other provisions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The effect of this measure on General Fund revenues from gross insurance premium taxes paid by insurance companies and deposited into the fund is unknown, since information is unavailable on the amount of insurance premiums paid by good drivers. Adoption of this measure would result in an initial appropriation of $10 million from the Insurance Fund, with $8 million to the Department of Insurance and $2 million to the Department of Justice for administrative costs. Thereafter, administrative costs for the Department of Insurance would increase approximately $7 million annually and $2 million annually for the Department of Justice, payable from the Insurance Fund. Administrative costs for the Department of Motor Vehicles will also increase as a result of this measure by approximately $400,000 annually